Qualifying for Life Insurance at Age 75 and Up

Advancements in medical technology and the increasing awareness for health and fitness has significantly increased the life expectancy of people, making them live years after they have turned 75. This made insurance companies reconsider their underwriting rules, making it possible for people over the age of 75 to get insurance coverage.

Before purchasing a life insurance, you have to make sure that you plan ahead of time and prepare yourself to make sure that you get the most affordable rate possible. Below are some of the things that you should consider before shopping for a life insurance:

  • Selecting an agent – It will help to have an agent that specializes on qualifying clients over the age of 75 for life insurance. If you are not familiar with how life insurance applications works then it will benefit you to have one around to help guide you through the procedure and make sure that you get the best package possible that will suit your needs. If you are shopping online, you may want to look for sites that specialize in offering life insurance for seniors, like SeniorLifeInsurancePlans.com. Since all they do is help older applicants find insurance to meet their needs, they will have some expertise in this area that will be useful.
  • Type of insurance – Whole life and term life insurance are still available for people over 75. These options are still open, although the premiums may be slightly higher due to your age. A whole life insurance covers your life at any age, meaning a payout will be given to your beneficiaries no matter what age you pass away so long as the policy is in force when this happens. This type of insurance also has an investment feature which allows you to use the dividends or cash value for any contingencies that you may have. A term life insurance is more affordable than a whole life insurance and covers your life for a specific period. A payout will be given to your assigned beneficiaries ONLY when you die in the period specified in the policy.
  • Health – Although it is expected that people over the age of 75 already have medical issues at the age of application, insurance agencies now have tailored their insurance packages to accommodate these medical conditions so that seniors will have the opportunity to have life coverage. Diabetes and high cholesterol levels are quite common in this age bracket and this is no longer considered a serious medical issue when applying for a life insurance. But if you are in good health and you have no preexisting medical condition, then chances are, you will still be able to get more affordable rates. So make sure that you squeeze in a little exercise and keep your diet healthy prior to taking a medical exam for optimal results.
  • Guaranteed approval – If in case you have some problems with your health, it is recommended that you opt for a guaranteed acceptance policy which will not require any medical exam prior to approval and will just involve a declaration of your current medical state. Although the premiums will be higher, this will surely give you the protection that you need.
  • Amount of coverage – Calculate how much coverage you will need and do not purchase more than what is necessary. Make a list of what your death benefits should cover and keep the amount close to that. In order to get an approximate amount of what you will need, you could get the help of a broker to do this for you. this will guarantee that you do not leave anything important out of your computation and that you do not purchase more than what you actually need and afford.

Term Life Insurance Vs. Whole Life Insurance

Have you come to the point where you need life insurance? If so, your next step is deciding what type of insurance you need.

Life insurance, in its purest form, provides a death benefit for survivors. Insurance companies have taken the basic insurance product, added other features, and turned life insurance into this conglomeration of life/death/financial product – lets simplify the matter.

Whole Life Insurance

Whole life insurance is marketed as insurance and savings plan all in one product. The idea behind whole life is that the owner has the same premiums for the duration of the policy (usually 30 years). Part of the premium goes to pay for insurance and part goes into a savings plan. At the end of 30 years the owner can let the accumulated cash continue to pay for the insurance, or they can cash out the policy, which terminates the death benefits.

Advantages

1. Tax deferred savings
2. Borrow against savings
3. Use savings to pay premiums

And of course, you still have the death benefit. Sounds good, so what’s the downside? If we compare whole life to term, you will see that for the same monthly premium you can get lots more in the death benefit column.

Term Insurance

Term insurance became popular in the 70′s. The knock against whole life was the commissions agents were getting. Insurance companies who started selling term insurance coined the phrase “buy term, invest the rest.”

What is term insurance? Basic term insurance is life insurance you rent or lease for a specific period of time. Lets say a man 25 wants $250,000 worth of insurance for 30 years. Take a look at some life insurance quotes online and you will see that a term policy may run him $30.00 a month, as compared to a whole life policy that can cost upwards of $150.00 – quite a difference.

It made sense. Buy a term policy where the death benefit could sufficiently take care of your spouse (in case of your death) and take the difference of $120.00 (difference between the two premiums) and invest it yourself. If you were diligent enough to do this you could easily out pace the returns in the whole life policy.

The key word is diligent, or maybe a better word is discipline. To successfully make term insurance work in your favor you need discipline.

What’s Best For You?

Term insurance is very attractive to younger people who need a bigger death benefit in case the primary bread earner passes early. Young families incur more debt in their first 15 years and need more coverage.

Whole life insurance appeals more to persons that don’t need that much life insurance and want a safe, tax deferred way to save.

When you venture into the marketplace you will find hybrids of the two life insurance products we reviewed here, don’t panic. Buy what you can afford; later, down the road you can reevaluate your coverage.

Get life insurance without a medical exam

Life insurance is intended to prevent financial problems for families when the primary provider passes away. It is reassuring to know that the policy will cover funeral expenses and provide support for the family in this time of need and transition. Most people realize the importance of having life insurance and make it a priority to purchase a policy, but those with significant health issues find it difficult to qualify. Most insurance companies exclude people with diabetes, heart-related problems and cancer. For those who have been rejected because of medical issues, there is a simple solution to find relatively cheap term life insurance to protect your family.

Almost all life insurance companies require applicants to undergo medical screening, but there are some that offer options for those who have been denied coverage in the past. There are plans that allow these people to get insurance without having to pass a medical exam. A simplified life insurance policy does not require any medical screening to qualify for issuance of a policy.There are several types of life insurance plans from which an individual with medical issues can choose. Other people who may choose one of these policies without the requirement for medical screening include those who want approval right away and want the quickest and easiest way to purchase life insurance. Both term and whole life no-exam policies guarantee acceptance for coverage with no exceptions. Whole life policies even carry a cash value and do not expire. No-exam graded life insurance policies are available, but the benefits change as the covered individual ages.Individuals who are employed may have access to a group life insurance policy. Many companies make this available to all employees. Any employee who qualifies cannot be denied coverage for any reason. The insurance company guarantees acceptance of all company employees regardless of medical status. No medical screening is required for coverage.Choosing to purchase a life insurance policy that does not require a medical exam is more costly, but may be the only way some individuals can get coverage. Term insurance is less expensive than whole life, but no-exam whole life policies usually have an exclusion period of two or more years. Some whole life policies that do not require an exam have higher premiums than those that require medical screening. For the individual who has been denied traditional coverage, it is worth spending a little more to gain the peace of mind that comes with having coverage

Welcome to my money talk blog

Hello, and welcome to my Money Talk blog. I suppose I should introduce myself and tell you a little about me. My name is Wesley Burt. I am a certified financial planner. Before qualifying as a CFP, I worked as a financial advisor for Edward Jones and later Wachovia Securities. I now have my own practice where I help people to set and reach their medium and long-term financial goals. Those goals might be living the retirement they always dreamed of, sending their children to college without graduating with crippling debt, or saving to buy a vacation home.

Sometimes, I also have to provide clients with a dose of reality. Yes, we would all like to retire multi-millionaires many times over, but for some people that is unrealistic and far beyond their means. In anything you do, I think it is important to have goals that make you stretch and work hard to reach them, but they should be attainable. Many people, if they set their goals too high, realize quickly they will not be able to hit them, and instead of readjusting their goals, they just give up on them entirely. On the other hand, if you set your goals too low and are always hitting them, you are not reaching your full potential.

Another thing I find that I often have to do is explain a lot of basic finance to clients. Some clients are really on the ball with their finances. Others are at a complete loss. I do not expect everyone to be a financial wizard, but I’m surprised at how many people lack a basic understanding of how their credit report is determined or the different types of life insurance options available. Things like this I believe everyone should have a basic understanding of.

That is what I hope this site can bring. I decided to start a blog that I can post to occasionally to share some basic facts, information, and news on financial matters that should be important to nearly all consumers. If you have a question you want answered, send me a message, and I will try to answer it.

In the meantime, I wish everyone a Happy Thanksgiving!